Arvind Jadhav has to keep AI afloat and face growing distrust of employees

Mumbai: He might have won the battle, but he's some distance away from winning the war. Some 800 pilots of national carrier Air India have called off a 10-day strike although their demand for the removal of chairman & managing director Arvind Jadhav has not been met. But Jadhav has little reason to celebrate. Like many of his predecessors, he has his task cut out - a task that keeps getting more Herculean and elusive with every passing day.
Air India is saddled with debt of Rs 40,000 crore, Rs 19,000 crore of which are working capital loans. Accumulated losses have burgeoned to Rs 13,000 crore - the strike contributed another Rs 150 crore in losses - with employee salaries and cost of operations totally out of whack with aviation norms.
Can this IAS officer from the 1976 batch pull off a miracle? Jadhav's immediate priority if he has to keep Air India afloat is to ensure a booster shot of at least Rs 10,000 crore in equity. The government, which has infused Rs 2,000 crore into the ailing airline in the past two fiscal years, may not be in mood to oblige this time around.
Along with equity, Air India needs an injection of confidence. That's a scarce commodity at the airline with many senior executives having little faith in the CMD's abilities and intentions. A proof of this is that the CMD's office asked the executive directors of the company to sign a letter supporting Jadhav last week.The former joint secretary in the power ministry was assigned the Air India mandate on 1 May, 2009, has little to show for his efforts two years down the line.
09/05/11 Manisha Singhal/Economic Times

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Categories: Air India May 2011